Newcastle United, Everton & rivals discuss major Premier League rule change after points deduction bombshell.
This week in London, there will be a debate over modifications to the Premier League’s sustainability and profitability regulations.
Premier League clubs’ shareholders will gather in London this week to talk about possible modifications to the regulations governing sustainability and profitability.
Beginning on Tuesday, February 6, the two-day meeting will focus largely on modifications to PSR. It follows charges against Nottingham Forest and Everton for violating PSR, which caps club losses at a maximum of £105 million over three years.
This is Everton’s second charge of the season; on the previous occasion, the team was docked ten points in November.
Although the exact penalty for Forest’s and The Toffees’ charges has not yet been determined, it may include a fine or a point deduction.
Some have criticized the restrictions because they force clubs to sell their greatest players and brightest prospects in order to
comply with PSR, and also prohibit them from making purchases.For instance, Newcastle United refrained from making any
purchases during the January transfer window due to the possibility of receiving a PSR penalty.
“On the first day [of the meeting], we will be talking about financial regulation. I don’t know whether that’s known but the
current system we have at the moment, the PSR system, we are contemplating making some changes to that over time.
“We have some proposals out for consultation with our clubs about moving and aligning more with the UEFA system.
UEFA have spent two years changing its financial regulations away from something called FFP to something called squad cost ratio, which is a different calculation, more a wage to turnover type calculation.
UEFA’s Financial Fair Play system limits a club’s spending on wages, transfers and agents’ fees to 70% of their total revenue by
the start of the 2025-26 season. UEFA’s rules set a 90% limit for the current 2023-24 season and an 80% limit for the 2024-25 campaign before dropping to 70%.
This season, Newcastle has had to abide with both sets of financial regulations.
The most recent club finances showed that the staff cost-to-turnover ratio for the 2022–2023 season was 74.1%.
Newcastle has lost a total of £155 million over the last three seasons, although the Premier League’s PSR evaluation does not account for several expenses, including investments in the academy, training facility, and women’s football. Therefore, as of right now, Newcastle’s applicable losses are less than the £105 million mark.
Although Newcastle United has complied with the regulations, as Newcastle Chief Executive Darren Eales addressed last month, they have restricted the club’s ability to spend on transfers.
“There is always that challenge of how you have a regime that protects football clubs from going bust and having the ability for clubs to invest and be upwardly mobile,” Eales stated.
All of the clubs will discuss whether or not we have struck the correct balance between preserving clubs’ ability to compete and preventing them from going bankrupt or overspending.
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